Jay-Z‘s TIDAL seemed to be one of the front-runners in the high-stakes streaming service wars, especially given its artist-friendly model of royalties that was touted in earlier times. According to a report from a Norweigan newspaper, the subscription service is reportedly losing tens of millions of dollars per year and could be completely out of cash in six months.
As reported by the New York Daily News:
The music streaming service is reportedly losing money to the tune of tens of millions of dollars per year, and may not have enough dough to stick around for another six months, Norwegian newspaper Dagens Næringsliv reports.
The outlet claims that since Hov purchased Tidal in 2015, it’s lost around $60 million — $44 million of which came in 2016 alone.
Still, Tidal reportedly claims it’s on track to turn a profit in mid-2018.
A spokesperson for the company dismissed the report to the Daily News, and said Tidal has been battling bad press since the very beginning.
“We have experienced negative stories about Tidal since its inception and we have done nothing but grow the business each year,” the spokesperson told The News in a statement.
The publication notes that Sprint invested $200 million in TIDAL last year.